A study by Syncapse found insight into the financial impact that Facebook fans can have on a business or organization by examining product spending, brand loyalty, propensity to recommend, brand affinity and earned media value. The study paneled 4,000 fans of the top 20 brands on Facebook, among them Coca-Cola, Victoria’s Secret, Nokia, BlackBerry, Playstation and Starbucks. It turns out Facebook fans have a large impact on the return on investment for businesses. Here are some key findings:
Syncapse’s research indicates the average yearly value of a fan is $136.38. Fan value can vary by company and product, and factors including purchase price, purchase frequency, product purchase cycle, product category and brand equity.
Among the 20 brands studied, Facebook fans reported spending, on average, $71.84 per year on more than respondents who were not fans of the brand.
Fans are also 28 percent more likely than non-fans to continue using the brand and are 41 percent more likely than non-fans to recommend a fanned product to their friends.
Spending can vary, as seen in comparing the fan value of BlackBerry, $83.98 in the study, to Nokia, which was $180.87. Syncapse points out that BlackBerry’s lower fan value is due to the strength of their product among non-fans, which is higher compared to Nokia. Nokia fans are intense and passionate fans, but lack of enthusiasm among non-fans is apparent.
This demonstrates that fan value is not just a matter of “good” or “bad” but rather must be considered in terms of the overall view of the loyalty inside and outside of the social medium.
Also, no two fans are alike. The fan base of a brand is unique and made up of different degrees of influencers and customers. The average fan value is $136.38, but it can soar to $270.77 in the best case or plummet to $0 in the worst.
Fan participation is another factor. Syncapse observed that an average fan may interact with a brand 10 times a year and will make one recommendation. But, a very active fan might interact 30 times and make 10 recommendations.
All brands studied were Nokia, BlackBerry, Motorola, Secret, Gillette, Axe, Dove, Victoria’s Secret, Adidas, Nike, Coca-Cola, Oreo, Skittles, Nutella, Red Bull, Pringles, Playstation, Xbox, Starbucks and McDonald’s.
Click here for the full study.